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Nvidia’s Planned Major Expansion in Israel Sparks Wide Interest from Potential Sites

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Nvidia, the world’s leading AI chipmaker and the first company to reach a $4 trillion valuation, is seeking to dramatically expand its operations in Israel to meet surging demand for AI data centers. The Santa Clara-based firm issued a request for information (RFI) this week to acquire land for a new campus near its existing facility in northern Israel, with the project expected to cost billions and generate thousands of jobs, according to multiple sources.

Nvidia entered the Israeli market in 2020 by acquiring Mellanox Technologies for nearly $7 billion. Its existing site is located in Yokne’am, a technology hub near Haifa. Nvidia declined to comment beyond confirming the RFI request.

One source, speaking anonymously, revealed that the company has received “dozens and dozens and dozens” of site offers from municipalities and other entities, many not near Haifa, reflecting broad local enthusiasm to host the expansion. The deadline for offers is July 23, with Nvidia planning a campus covering up to 180,000 square meters.

The Haifa municipality stated it is preparing a competitive offer, asserting it has the “best potential” for Nvidia’s new campus.

The planned expansion reflects a broader race among tech giants such as Microsoft, Amazon, Meta, Alphabet, and Tesla to build AI data centers and capture leadership in emerging AI technology. This surge is driving increased demand for Nvidia’s advanced processors.

Industry insiders emphasize Israel’s critical role in the AI era, making rapid expansion necessary for Nvidia. Since acquiring Mellanox, Nvidia’s Israeli operations have nearly tripled in size and reportedly contributed $13 billion in revenue last year, though the company has not publicly confirmed this figure.

In addition to acquisitions, Nvidia has built Israel’s most powerful AI supercomputer, which served as a blueprint for Elon Musk’s Colossus supercomputer. The company employs approximately 5,000 people in Israel.

Dror Bin, CEO of the Israel Innovation Authority, described the planned campus as “massive,” potentially housing thousands of employees. He said Nvidia’s expansion signals a long-term commitment and strong confidence in Israel.

Nvidia’s expansion plans contrast with rival Intel, which has been present in Israel since 1974 and employs 9,350 workers but is currently implementing global workforce reductions. Reports suggest a few hundred Intel workers in Israel may be affected, though Intel declined to provide specific numbers.

Nvidia Becomes First Public Company to Reach $4 Trillion Market Value Amid AI Boom

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Nvidia achieved a historic milestone on Wednesday by becoming the first public company ever to reach a market capitalization of $4 trillion. The leading chipmaker’s shares rose 1.63% to $162.61, touching an all-time high of $164 during the day. The surge reflects strong investor confidence fueled by booming demand for artificial intelligence (AI) technologies, where Nvidia plays a critical role.

Industry experts weighed in on Nvidia’s dominance and the challenges ahead:

  • Michael Ashley Schulman, CIO at Running Point Capital, highlighted potential competition risks from tech giants like Amazon, Microsoft, and Meta designing their own chips. He also noted quantum computing could become a future disruptor, possibly within 5 to 7 years.

  • Dan Morgan, Senior Portfolio Manager at Synovus Trust, pointed out that AI capital expenditure by top hyperscalers (Amazon, Microsoft, Meta, Alphabet) is expected to jump to over $330 billion in 2025, up from $240 billion in 2024. Morgan flagged investor concerns about a possible slowdown in Nvidia sales as customers transition to new Blackwell chips.

  • Gil Luria, Analyst at D.A. Davidson, said Nvidia will remain a key AI hardware provider despite likely losing some market dominance. He noted the company’s valuation is high but supported by strong investment visibility.

  • Chuck Carlson, CEO of Horizon Investment Services, described Nvidia as the “golden child” of AI investment, emphasizing its leadership and growth in accelerated computing and generative AI.

  • Art Hogan, Chief Market Strategist at B Riley Wealth, praised Nvidia’s transformation from a gaming chipmaker to a crypto mining and now AI powerhouse, calling its recent growth “amazing.”

  • Robert Pavlik, Senior Portfolio Manager at Dakota Wealth, called Nvidia the backbone of AI infrastructure and predicted further stock upside as companies increasingly focus investments on AI.

Nvidia’s market cap milestone underscores its central role in powering AI advancements and signals investor appetite for exposure to this transformative technology sector.

CoreWeave to Acquire Core Scientific in $9 Billion AI Infrastructure Deal

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CoreWeave announced on Monday it will acquire bitcoin miner Core Scientific in an all-stock deal valued at approximately $9 billion, as AI infrastructure companies intensify efforts to secure energy and data center capacity to meet surging demand. The deal reflects a broader trend where crypto firms—once focused on digital assets—are becoming essential to powering artificial intelligence workloads.

Core Scientific shareholders will receive 0.1235 CoreWeave shares for each of their shares, valuing the company at $20.40 per share—a 66% premium from the stock’s last closing price before deal talks emerged in late June. Despite this, Core Scientific shares dropped 22% in early trading Monday, while CoreWeave shares slid 4.5%.

The acquisition is expected to close in Q4 2025, with the final price set at that time. CoreWeave CEO Michael Intrator said the deal will “accelerate our strategy to deploy AI and HPC workloads at scale” and eliminate over $10 billion in future lease liabilities over 12 years.

A Strategic Pivot from Crypto to AI

Bitcoin miners, known for their energy-intensive operations, are increasingly being courted by AI companies. CoreWeave will gain control of Core Scientific’s 1.3 gigawatts (GW) of contracted power—critical capacity in the tight market for AI data center expansion.

Analyst Gautam Chhugani of Bernstein noted that the deal “sets the bar” for other crypto miners considering an AI pivot, with power supply emerging as a key bottleneck for the AI industry.

Founded in 2017 as an Ethereum miner, CoreWeave pivoted toward AI following Ethereum’s “Merge” upgrade in 2022, which rendered mining unprofitable. Since then, its revenue has surged, growing over eightfold in 2024, according to its IPO prospectus. The company now has a market valuation of about $79 billion.

A Turnaround Story for Core Scientific

Core Scientific filed for bankruptcy in late 2022, hit hard by plummeting bitcoin prices and soaring energy costs. It emerged in early 2024 with a renewed strategy, signing 12-year agreements with CoreWeave to lease out data center capacity—including one deal for 200 MW of infrastructure for AI computing.

The merger marks a dramatic turnaround and a strategic shift for Core Scientific, from mining crypto to becoming a foundational pillar of AI infrastructure.

Goldman Sachs advised CoreWeave on the transaction, while Moelis & Co and PJT Partners advised Core Scientific.